NZ unemployment falls to 6%

New Zealand's unemployment rate fell to a three-year low in
the fourth quarter of 2013 as jobs growth beat expectations,
led by gains in the retail, accommodation and hospitality
sectors.

The unemployment rate fell to 6 per cent in the three months
ended December 31, in line with the forecast by a Reuters
survey of economists, and down from 6.2 per cent in the
September quarter, according to Statistics New Zealand's
household labour force survey. That's the lowest jobless rate
since June 2009.

Employment rose 1.1 per cent in the quarter, beating the 0.5
per cent pace of growth forecast, led by gains in retail,
accommodation and food services, construction, and
professional scientific, technical, administration and
support services. Employment grew 3 per cent on an annual
basis.

"We're seeing strength across the labour market, particularly
in industries that provide service," industry and labour
statistics manager Diane Ramsay said in a statement. "The
unemployment rate has been falling and employment rising for
the last 18 months, with both now at levels last seen in
early 2009."

The kiwi dollar climbed to 82.43 US cents after the figures
were released, from 82.19 cents immediately before as the
data added to evidence of a rebounding economy that will spur
the central bank to raise interest rates this year.

New Zealand's participation rate rose to 68.9 per cent in the
December quarter from 68.6 per cent in September, and was up
0.7 percentage points from a year earlier, against a backdrop
of rising inbound migration.

The labour cost index, which measures wage inflation, rose at
a quarterly pace of 0.5 per cent across all sectors and
including overtime. Private sector wages rose 0.6 per cent,
ahead of a 0.4 per cent increase in public sector wages.

The figures come as surveys last month showed signs of an
improving labour market, with gains in employment confidence
and firms finding it harder to hire find skilled and
unskilled workers. The Reserve Bank is keeping tabs on
capacity pressure that may emerge as the Canterbury rebuild
and Auckland housing suck up resources, which may spill over
into broader inflation if wages rise, and lead to higher
consumer prices.

Unemployment in Auckland fell to 6.3 per cent in December
from 6.7 per cent, while Canterbury's jobless dropped to 3.4
per cent from 4.2 per cent.

The number of construction workers rose to 185,800 in the
quarter from 177,800 in the third quarter, and manufacturing
jobs increased to 254,000 from 247,900. Retail, accommodation
and hospitality employees increased to 363,100 from 356,200.
Agriculture, fishing and forestry employees increased to
149,500 from 138,700.

Today's figures show total hours worked fell 0.3 per cent to
a seasonally adjusted 75.7 million hours in the quarter,
though that was 1.3 per cent annually.

Underemployment increased, with 5.3 per cent of part-time
workers wanting to take on more work, compared to 4.2 per
cent in the September quarter.

The quarterly employment survey, also released today, showed
ordinary time private sector wages increased 0.3 per cent to
$25.98 in the quarter, and were up 3.2 per cent on an annual
basis. That compared to a 0.2 per cent fall in public sector
wages to $35.27 and an annual increase of 1.6 per cent.

Average weekly earnings for full-time equivalents ordinary
time increased 0.2 per cent to $1,051.64.

The labour market continues to grow and unemployment has
fallen 0.2 per cent to 6 per cent, Statistics New Zealand has
just announced.

In the latest employment stats just published, Statistics NZ
said there were 24,000 more people employed in the December
2013 quarter, following an additional 28,000 in the September
quarter.

Over the December 2013 year, the number of people employed
rose 3 per cent in the Household Labour Force Survey (HLFS).
Demand for workers from established businesses rose 1.9 per
cent in the Quarterly Employment Survey (QES).

"We're seeing strength across the labour market, particularly
in the industries that provide services,"industry and labour
statistics manager Diane Ramsay said. "The unemployment rate
has been falling and employment rising for the last 18
months, with both now at levels last seen in early 2009."

Annual wage inflation, as measured by the labour cost index
(LCI) salary and ordinary time wage rates, remained steady at
1.6 per cent in the December 2013 quarter. Average ordinary
time hourly earnings, as measured by the QES, rose 2.9 per
cent over the year - up from 2.6 per cent in the September
quarter.

The latest Roy Morgan employment analysis shows unemployment
did not change in the last quarter, and under-employment
(those in part time work when needing full time work)
actually increased by a huge 2.7%!

This means the real unemployment figure for NZ is actually
19.8% of the workforce! A shockingly high figure, and a
result of an incompetent Government.

If you can't believe Roy Morgan, ask most employers how many
applicants they get for advertised jobs - many will answer
'in the dozens', another sign of the terrible lack of
permanent jobs in NZ at the moment.